Iron ore bottoms out and zinc prices continue a strong rebound, according to latest reports

S&P Global Market Intelligence announced the continued enhancement of metals and mining research with the inaugural iron ore and zinc reports as part of the Commodity Briefing Service (CBS) series. The enhanced CBS now covers monthly market reports on copper, nic6tkel, zinc and iron ore. The series also examines recent market developments, mine supply estimates and forecasts of asset- and country-level data — all of which are available on the S&P Global Market Intelligence platform.

"S&P Global Market Intelligence has been at the forefront of research and analysis in the mining and metals space," said Sanjay Saraf, Head of Metals & Mining Commodity Market Analysis at S&P Global Market Intelligence. "Adding key research on iron ore and zinc markets to the existing Commodity Briefing Service bolsters our offering and allows clients to access a unique 'mine-to-metal' view using our online database."

Findings from the Iron Ore Commodity Briefing Service

In its inaugural CBS report on iron ore, S&P Global Market Intelligence examined the prevailing market conditions. Iron ore prices bottomed out after a sharp four-month correction following the significant price rises recorded in 2016. Findings highlight the mixed H1 2017 output from the "big four" producers, with Vale and BHP recording year-over-year increases of 8.3% and 4.7%, respectively, while Rio Tinto and Fortescue Metals Group reported declines of 2.0% and 1.3%.

The CBS report follows the recent publication of "The Iron Ore Market 2017" by The United Nations Conference on Trade and Development (UNCTAD). Material for this report, which examines the market for iron ore in 2016, was provided by S&P Global Market Intelligence.

According to S&P Global Market Intelligence's mine operating-cost models, the mining industry as a whole now spends US$22/dmt less on producing iron ore than it did in 2013. This is attributed to tightened capital controls, renegotiated contracts and the exit of high cost supply. The production-weighted average cost for the seaborne iron ore market was only US$34/dmt in 2016.

Findings from the Zinc Commodity Briefing Service

Zinc prices continued to rebound strongly from the sub-US$2,500/t London Metal Exchange three-month lows seen in early- to mid-June, with a nadir of US$2,428/t on June 7. Zinc stocks decreased further in June, with total exchange inventories (LME and SHFE) down 45% year over year in the first half of 2017.

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